Here’s what HIVE AI had to say about “How to handle IRS representation matters?”:
Handling IRS Representation Matters
Understanding the Scope of IRS Representation
Practice before the Internal Revenue Service encompasses all matters connected with presentation to the Internal Revenue Service or any of its personnel relating to a taxpayer’s rights, privileges, or liabilities under laws or regulations administered by the Internal Revenue Service. Such presentations include the preparation and filing of necessary documents, correspondence with and communications to the Internal Revenue Service, and the representation of a taxpayer at conferences, hearings, and meetings. 1 This comprehensive definition establishes that representation extends far beyond simple document preparation to include all forms of advocacy and communication with the IRS on behalf of taxpayers.
Representation involves acts performed on behalf of a taxpayer by a representative in practice before the Internal Revenue Service. Representation does not include the furnishing of information at the request of the Internal Revenue Service or any of its officers or employees. 1 1 This distinction is crucial for practitioners to understand, as merely providing information upon IRS request does not constitute formal representation requiring the same level of authorization and responsibility.
Qualified Representatives and Authorization Requirements
Who Can Represent Taxpayers
The person you choose to represent you must be an attorney, certified public accountant or an enrolled agent authorized to practice before the IRS. 2 Additionally, any attorney, certified public accountant, enrolled agent, enrolled actuary, or any other person permitted to represent the taxpayer before the Internal Revenue Service who is not disbarred or suspended from practice before the Internal Revenue Service and who has a written power of attorney executed by the taxpayer may be authorized by such taxpayer to represent the taxpayer in any interview. 3
For collection matters specifically, during the collection process, or an appeal before Appeals you can be represented by yourself, an attorney, a certified public accountant, an enrolled agent, an immediate family member, or any person enrolled to practice before the IRS. If you’re a business, full-time employees, general partners, or bona fide officers can also represent you. 4
Power of Attorney Requirements
If you plan to have your representative talk to us in your absence, you must provide a properly completed Form 2848, Power of Attorney and Declaration of Representative. 2 The Form 2848 is the standard authorization document that grants representatives the authority to act on behalf of taxpayers in IRS matters.
To have your representative appear before us, contact us on your behalf, and/or receive your confidential material, file Form 2848, Power of Attorney and Declaration of Representative. To authorize someone to receive or inspect confidential material, file Form 8821, Tax Information Authorization. 4 This distinction between Form 2848 and Form 8821 is important, as Form 8821 only authorizes access to information without granting representational authority.
IRS Communication Protocols with Representatives
Standard Communication Procedures
In most instances in which a power of attorney is recognized, the IRS will contact the representative to set up appointments and to provide the representative with lists of required items. 5 This establishes the normal protocol where the IRS works directly with the authorized representative rather than the taxpayer.
Furnish copies of communications received from the taxpayer to the authorized representative if the communications have a direct bearing on the nature of their representation. In a docketed U.S. Tax Court case, address and send all written communications to the COR, if any. 6 6 This ensures that representatives remain informed of all relevant communications that could affect their representation.
Notice and Correspondence Authorization
If you want to authorize your representative to receive copies of all notices and communications sent to you by the IRS, you must check the box that is provided under the representative’s name and address. No more than two representatives may receive copies of notices and communications sent to you by the IRS. Do not check the box if you do not want copies of notices and communications sent to your representative(s). 5
Representatives will not receive forms, publications, and other related materials with the correspondence. 5 This limitation means that while representatives receive substantive communications, they may need to obtain forms and publications separately.
Circumstances Allowing Direct Taxpayer Contact
When the IRS May Bypass Representatives
However, if the representative is unavailable, does not respond to repeated requests, and does not provide required items (other than items considered privileged), the IRS can bypass your representative and contact you directly. 5 This provision protects the IRS’s ability to conduct necessary examinations and collections when representatives become unresponsive.
Where a recognized representative has unreasonably delayed or hindered an examination, collection or investigation by failing to furnish, after repeated request, nonprivileged information necessary to the examination, collection or investigation, the Internal Revenue Service employee conducting the examination, collection or investigation may request the permission of his/her immediate supervisor to contact the taxpayer directly for such information. If such permission is granted, the case file will be documented with sufficient facts to show how the examination, collection or investigation was being delayed or hindered. Written notice of such permission, briefly stating the reason why it was granted, will be given to both the recognized representative and the taxpayer together with a request of the taxpayer to supply such nonprivileged information. 7 7
Statutory Protection Against Improper Contact
Without the prior consent of the taxpayer given directly to the Secretary or the express permission of a court of competent jurisdiction, the Secretary may not communicate with a taxpayer in connection with the collection of any unpaid tax if the Secretary knows the taxpayer is represented by any person authorized to practice before the Internal Revenue Service with respect to such unpaid tax and has knowledge of, or can readily ascertain, such person’s name and address, unless such person fails to respond within a reasonable period of time to a communication from the Secretary or unless such person consents to direct communication with the taxpayer. 8
Continued Recognition Despite Bypass
Permission to by-pass a recognized representative and contact a taxpayer directly does not automatically disqualify an individual to act as the recognized representative of a taxpayer in a matter. 7 Additionally, even if the subject is notified directly that the agent believes the representative is hindering the investigation, the IRS must continue to notify the representative of any proposed future contacts with the taxpayer, provide the representative with copies of notices, etc., and/or recognize the representative if the representative makes an appearance. 9
Special Considerations for Different Types of Proceedings
Tax Court Representation
A petitioner in a small tax case may appear without representation or may be represented by any person admitted to practice before the Court. As to representation, see Rule 24. 10 Tax Court proceedings have their own specific rules regarding representation that may differ from general IRS practice requirements.
The taxpayer shall continue to be represented in accordance with the rules of practice prescribed by the Court. No qualified person shall be denied admission to practice before the Tax Court because of his failure to be a member of any profession or calling. 11
Appeals Process Representation
A principal officer or trustee may act on behalf of your organization at any level of appeal. Or you may authorize an attorney, certified public accountant or individual enrolled to practice before the IRS to represent you. In that case, you need to file Form 2848, Power of Attorney and Declaration of Representative. 12
The IRS will then authorize your representative to file written responses and execute consents, agreements and — in certain circumstances — returns on your behalf and communicate directly with him or her about your case. 12
Managing Multiple Representatives and Conflicts
Disputes Between Representatives
Where there is a dispute between two or more recognized representatives concerning who is entitled to represent a taxpayer in a matter pending before the Internal Revenue Service (or to receive a check drawn on the United States Treasury), the Internal Revenue Service will not recognize any party. However, if the contesting recognized representatives designate one or more of their number under the terms of an agreement signed by all, the Internal Revenue Service will recognize such designated recognized representatives upon receipt of a copy of such agreement according to the terms of the power of attorney. 13
Joint Return Considerations
A separate Form 2848 must be completed for each taxpayer. If a tax matter concerns a year in which a joint return was filed, each spouse must file a separate Form 2848 even if they are appointing the same representative(s). 6 This requirement ensures that each spouse’s representational rights are properly documented and protected.
Professional Responsibilities and Disciplinary Considerations
Consequences of Improper Conduct
If a representative engages in conduct described above, the matter can be referred to the Office of Professional Responsibility for consideration of possible disciplinary action. 5 Representatives who fail to respond appropriately to IRS requests or who unreasonably delay proceedings face potential disciplinary consequences.
Restrictions During Suspension or Disbarment
Represent taxpayers before the IRS in any capacity. This restriction includes representation before the Examination Division, the Taxpayer Advocate Service, or IRS Customer Service concerning a tax return the suspended or disbarred individual prepared or signed as the preparer. 14
However, suspended or disbarred practitioners retain certain limited rights: Represent themselves concerning any IRS matter. Authorized under section 10.7(a) of Circular 230. 14 They may also appear before the IRS as a trustee, receiver, guardian, administrator, executor, conservator, or other fiduciary if duly qualified/authorized as such under the law of the relevant jurisdiction. Authorized under section 10.7(e). 14
Best Practices for Effective IRS Representation
Documentation and Communication
Practitioners should maintain comprehensive documentation of all communications with both the IRS and their clients. Whenever correspondence is received from a taxpayer or representative in a tax investigation, and the reply or a copy thereof cannot be directed to the representative as requested because the above-described Conference and Practice Requirements have not been satisfied, the reply should be directed to the taxpayer, and the representative should be advised. 9
Maintaining Client Relationships
Stop the interview with a taxpayer (unless required by court order) whenever a taxpayer requests to consult with a representative who is permitted to represent taxpayers before the IRS (e.g., accountant, CPA, attorney, or enrolled agent). 15 This protection ensures that taxpayers can obtain representation when needed during IRS proceedings.
Exception for Direct Taxpayer Contact
The IRS may work directly with a taxpayer to resolve an issue on the taxpayer’s account if: 1) The taxpayer initiates the contact to resolve the issue on the account 2) The taxpayer expresses a specific desire to resolve the issue without the involvement of the representative after the IRS employee has advised the taxpayer of the current representation, and 3) The taxpayer’s desire to have the IRS work directly with the taxpayer instead of the representative is properly documented in the case file. 15
Effective IRS representation requires a thorough understanding of authorization requirements, communication protocols, and the various circumstances that can affect the representative-taxpayer-IRS relationship. Practitioners must remain vigilant about maintaining proper documentation, responding promptly to IRS requests, and ensuring that their clients’ interests are protected throughout all phases of IRS proceedings. The complexity of these requirements underscores the importance of proper training and ongoing education for tax professionals who represent taxpayers before the IRS.
Sources
1 Treasury Regulation 601.501
2 IRS – Notice 1215 What to do If You Disagree with the Penalty
3 IRC § 7521(c)
4 IRS – Publication 594 The IRS Collection Process
5 IRS – Publication 947 Practice Before the IRS and Power of Attorney
6 IRS IRM 8.6.1 Conference and Issue Resolution
7 Treasury Regulation 601.506
8 IRC § 6304(a)
9 IRS IRM 9.5.1 Administrative Investigations and General Investigative Procedures
10 U.S Tax Court Rule – Rule 172. Representation
11 IRC § 7452
12 IRS Determination-202412011
13 Treasury Regulation 601.508
14 IRS – Publication 6033 Guidance on Restrictions during Suspension or Disbarment from Practice Before the Internal Revenue Service
15 IRS IRM 1.4.51 Insolvency
Try Your AI Tax Assistant for Free!
Ready to transform your practice with agentic AI in tax? See firsthand how our cutting-edge AI tax tools can revolutionize your approach to tax research and planning.